Sunday, 7 February 2016

Regional cash-flow crisis looms, warn turnaround firms | The National

Regional cash-flow crisis looms, warn turnaround firms | The National:

"Turnaround specialists have warned that regional companies face a looming cash-flow crisis as banks pull back from lending amid US$30 oil.

Lenders are reporting a sharp rise in non-performing loans that started among smaller companies and is extending to larger corporates as firms seek to conserve cash and governments face funding pressures because of the weak oil price.

“When banks ask companies to repay their short-term debt and companies aren’t able to find additional funding, this will be the moment where some sort of crisis will happen,” said Eugenio Berenga, the managing director of AlixPartners in Dubai. “The larger ones are already thinking about which costs they can reduce and work from a lower cost base. This is already happening quietly.”"



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